Capital International’s Investment Process
Overview
The key components of Capital International’s investment process are
- intensive in-house research
- bottom-up stock picking
- a multiple-manager team system
- layered risk controls
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Multiple Portfolio Manager System
Since 1958, the Capital organisation has employed an investment process, which
comprises teams of managers who make individual investment decisions – the
multiple portfolio manager system.
The team of investment managers works on each client account by dividing the
overall group portfolio into segments. In addition, a group of research analysts
typically manages one or more segments (these segments are referred to as “research
portfolios”).
Within each segment, portfolio managers have autonomy to make individual decisions
as to company, country or industry selection, timing of valuations and transactions,
as well as percentage to be invested.
The process allows highly skilled decision-makers to build a portfolio comprised
only of their highest convictions.
Manager autonomy intrinsically helps provide portfolio diversification and
tends to produce consistent long-term investment results, while helping to
reduce volatility.
By way of representation, the diagram below outlines the team which manages
the Capital International Global Equity portfolios for Australian and New Zealand
based wholesale clients.
Capital International Global Equity investment team (for Australian and New Zealand wholesale clients)
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View Capital International's Global Equity multiple portfolio manager team |